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Sterling Bond Investor Presentation

WORLD LEADER IN CARBOHYDRATE INGREDIENTS WORLD LEADER IN CARBOHYDRATE INGREDIENTS Sterling Bond Investor Presentation June 2002 Agenda Business Overview Group Strategy Financial Review Credit Strength Bond Offering Details A World Leader in Carbohydrate Ingredients History

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Sterling Bond Investor Presentation

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  1. WORLD LEADER IN CARBOHYDRATE INGREDIENTS WORLD LEADER IN CARBOHYDRATE INGREDIENTS Sterling Bond Investor Presentation June 2002

  2. Agenda • Business Overview • Group Strategy • Financial Review • Credit Strength • Bond Offering Details

  3. A World Leader in Carbohydrate Ingredients

  4. History The First Hundred Years Initial Starch Investments A FocusedBusiness • 1859Henry Tate forms sugar refining partnership • 1976First investment in Cereal Sweeteners & Starches • 1938Listed on the London Stock Exchange • 1999-2002Sale of 30 businesses to focus on core activities • 2000Creation of a Global Cereal Sweeteners & Starches business • 1921Henry Tate & Sons merge with Abram Lyle & Sons • 1988First investment in US Corn Wet Milling • 1959First investment in North America

  5. Group Structure in June 2002Following disposal of 30 businesses CEREAL SWEETENERS & STARCHES SUGAR • Staley • Almex (JV) • Citric Acid • Amylum • Eaststarch (JV) • Sucralose • TLS/Alcantara • Sugar Trading • Eastern Sugar (JV) • Redpath Sugar • Occidente • Vietnam & China Note: excludes UM Group - planned disposal

  6. The Starch Tree – Inputs and Outputs of the Industry Lysine Enzymes Citric Acid Tryptophan Lactic Acid MonoSodiumGlutamate Fuel/Industrial/ Potable Ethanol Xanthan Gum 42 & 55 HFCS Riboflavin Crystalline Fructose Crystalline Dextrose Cyclodextrins Corn Syrup Separation Fermentation Sorbitol/Hydrogenated Syrups Glucose Syrup PrimaryStarches Value AddedStarches Conversion Maltodextrin Starch Wet Milling Corn(Dent/Waxy/ High Amylose) Potato Tapioca Wheat Starch Industry Overview

  7. Cereal Sweeteners Raw Material Product Markets Corn HFCS Corn Syrup Maltodextrins Polydextrose Dextrose Crystalline Dextrose & Fructose Soft drinks Confectionery Brewing Wheat Baking Fermentation Tate & Lyle Product Volume : 5m tonnes Tate & Lyle Position World: No.1 Crystalline Fructose North America: No. 2/3 HFCS, No.2 Dextrose EU: No.1 HFCS (Isoglucose), No.2 Glucose

  8. Starches Raw Material Product Markets Corn Food Beverages Pharmaceutical Food Starches Wheat Paper & Board Corrugating Building Materials Textiles Industrial Starches Tate & Lyle Product Volume : over 1.5m tonnes Tate & Lyle Position Global: No.1 Industrial Starches North America: No. 2 in Commodity & Specialty Food Starches

  9. Raw Material Product Market Fermentation Soft Drinks Foods Detergents Alcoholic Drinks Fuel Industrial Uses Cereal Sweeteners Citric Acid Ethanol MSG Sugar Molasses Hydrogenation Toothpaste Chewing Gum Polyurethane Sorbitol Dextrose Fermentation & Hydrogenation World: No.1 Citric Acid EU: No.1 MSG & Grain Alcohols

  10. Sugar • TLS (UK) – 42% share of UK industrial, 30% share of UK retail sugar markets • Alcantara – c. 50% of Portuguese market • Regulatory protection under EU sugar regime • Strong consumer brands • Eastern Sugar poised to benefit from EU enlargement • Other Markets: Redpath (Canada), Occidente (Mexico), Nghe An (Vietnam)

  11. Business Overview Group Strategy Financial Review Credit Strength Bond Offering Details Agenda

  12. LOW COST VALUE ADDED FOCUS Focusing on our core business Developing a low cost culture throughout the Group Growing the contribution from value added products Strategy Overview

  13. The Group in March 1999Significant operating units Starch A E Staley Almex Citric Imasa (Argentina) Sugar Domino Western Redpath Occidente Sugar TLS/Alcantara TLI Eastern (JV) Garbow (Poland) Starch Amylum Eaststarch (JV) North America Europe Animal Feed PM Ag United Molasses UMT Rumenco ABS (JV) FSL Bells International Other Bundaberg ZSR Zambia Sugar UFIC/EAP NATL (Vietnam) China Booker Tate (JV) Fletcher Smith TLPT Sucralose

  14. Group Structure in June 2002Following disposal of 30 businesses CEREAL SWEETENERS & STARCHES SUGAR • Staley • Almex (JV) • Citric Acid • Amylum • Eaststarch (JV) • Sucralose • TLS/Alcantara • Sugar Trading • Eastern Sugar (JV) • Redpath Sugar • Occidente • Vietnam & China Note: excludes UM Group - planned disposal

  15. Delivering on Strategy Low cost culture throughout the Group Good progress on Amylum integration Confident of achieving £50m pa benefit Millwall production site closed Exceeded 3% energy efficiency target New Global Teams Export Sales Speciality Sales R&D

  16. A World Leader in Carbohydrate Ingredients Speciality products - specific functionality Focused R&D working with customers 45% contribution from Value Added

  17. Business Overview Group Strategy Financial Review Credit Strength Bond Offering Details Agenda

  18. Turnover EBIT 1 Margins Net interest Profit before tax 1 Summary Profit and Loss Account £m Year ending March 2002 2001 Change (%) • 3,944 • 216 • 5.5 • (57) • 159 • 4,146 • 185 • 4.5 • (72) • 113 • -5 • +17 • +21 • +41 • 4.3x • 2.3x • +28 • +43 • 5.5x • 3.3x • EBITDA / Interest 2 • EBIT / Interest 2 • 1 Before exceptional items and goodwill amortisation • 2 Excludes joint ventures and associates

  19. Profit and Loss AccountAnalysis - year ended March 2002 £mPlanned# Ongoing# Disposals Discont’d Total Sales 3,053 371 520 3,944 Profit before interest* 216 15 (15) 216 Goodwill amortisation (8) - - (8) Profit before interest‡208 15 (15) 208 PBI/Sales margin* 7.1% 4.0% n/a 5.5% # Ongoing and Planned Disposals together constitute continuing activities * before exceptional items and goodwill amortisation ‡ before exceptional items

  20. Segmented Profit and Loss 2002 Sales 2002 EBIT EBIT (1): £216m Sales: £3,053m • * Before exceptional items and goodwill amortisation • (1) Includes net cost from Other Businesses and Activities of £22m

  21. Fixed Assets Working Capital Net Debt Provisions Net Assets Summary Balance Sheet 2002 2001 £m Year ending March • 1,860 • 551 • (963) • (386) • 1,062 • 1,699 • 365 • (639) • (344) • 1,081 • Gearing • Net Debt / EBITDA # • RONOA ‡ • 59% • 2.1x • 10.5% • 91% • 3.3x • 8.5% # EBITDA excludes share of income from joint ventures and associates ‡ before exceptional items

  22. Capital Expenditure £m Years ended March

  23. Free Cash Flow Generated £273mYear to March 2002, in £m 1 Interest 143 Tax Other Capex 301 61 273 35 Reduction in working capital 76 Free cash flow Operating profit before depreciation

  24. Reduction in Net Debt £324mYear to March 2002, in £m 963 Free cash flow 15 Disposals 79 639 Investments Other Dividends 273 137 8 2002 2001

  25. Net Debt - 5 Year HistoryAs at 31 March £m

  26. Financial Targets • EBITA / Interest Cover > 4x • 15% RONOA • > 50% of EBITA from value added

  27. Debt Maturity Profile Maturity of Borrowings Undrawn Committed Facilities Existing borrowings £200m bond Dotted line represents syndicated facility to be repaid with proceeds from £200m bond issue

  28. Receivables securitisation 52 42 Indebtedness of JVs & associates 100% 145 220 Group share 71 86 Commitments under operating leases 166 210 Items not on Balance Sheet 2002 2001 £m Year ending March

  29. Agenda • Business Overview • Group Strategy • Financial Review • Credit Strength • Bond Offering Details

  30. Rating Agency Perspective Moody’s – Baa2 (Stable) Standard & Poor’s – BBB (Stable) • “The ratings reflect the strengths of T&L’s competitive positions in the sugar, cereal sweeteners and starch industries, and the broad diversification of the company’s earnings base....It also takes into account that the operating performance should improve after a difficult 2000 / 2001 financial year....The ratings outlook is stable, reflecting Moody’s expectation that T&L will continue to be exposed to the cyclicality of its markets, resulting in fluctuating profitability and debt protection measures; it also reflects that T&L financial profile should be positively impacted by asset sales which should help reduce debt.” • 7 Mar 2002 • “The ratings reflect the group's leading positions in cereal sweeteners and starches in the U.S. and the EU, as well as in the very stable EU sugar industry; its successful divestment of noncore businesses, especially that of the loss-making U.S. sugar operations; and improving financial profile… Further improvements in earnings and debt measures are likely in financial year 2003, on the back of stable market conditions; additional synergy benefits from the integration of Staley and Amylum; the group's enhanced business mix following the divestment of the U.S. sugar operations; and limited investments. To sustain the current ratings, Tate & Lyle needs to maintain EBITA net interest coverage of at least 3x to 3.5x.” • 7 June 2002

  31. Strength of operating cash flow Investment grade ratings Conservative financial policies Improving financial ratios Consistent and effective strategy Investment Highlights

  32. Business Overview Group Strategy Financial Review Credit Strength Bond Offering Details Agenda

  33. Issuer: Tate & Lyle International Finance PLC Guarantor: Tate & Lyle PLC Issue Size: GBP 200m Maturity: 7 or 10 years Offering Format: Eurobond issued off existing EMTN programme Ratings: Baa2 (stable outlook) / BBB (stable outlook) Use of proceeds: Refinancing existing debt Joint-Bookrunners: HSBC, Schroder Salomon Smith Barney Offering Summary

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